HC Deb 18 June 1975 vol 893 cc457-8W
Mr. Mike Thomas

asked the Secretary of State for Social Services what would be the net cost, taking into account savings on supplementary benefit and extra income tax yield, of (i) increasing the invalid care allowance from £7.90 to £16.70 for a single person and from £12.80 to £24.55 for a couple and (ii) increasing the children's rates to £4.35 for a child aged under 11; £5.35 for a child aged 11.15; £6.35 for a child aged 16–17 and £7.35 for a child aged 18.

Mr. Alfred Morris

Approximately £2.5 million annually, net of savings in social security benefits, for persons at present receiving supplementary benefit, and about £1 million annually for every 2,000 of those entitled to the allowance but not receiving supplementary benefit. No reliable estimate can be made of the tax yield, because there is insufficient information about the income of beneficiaries.

Mr. Mike Thomas

asked the Secretary of State for Social Services what would be the net cost, taking into account savings on supplementary benefit, of (i) increasing the non-contributory invalidity pension from £7.90 in November to £16.70 for a single person and from £12.80 to £24.55 for a couple, and (ii) increasing the children's rates to £4.35 for a child aged under 11; £5.35 for a child aged 11–15; £6.35 for a child aged 16–17 and £7.35 for a child aged 18; and what would be the effect on the cost if the NCIP were made taxable.

Mr. Alfred Morris

The cost, net of supplementary benefit savings, of the changes my hon. Friend suggests to the non-contributory invalidity pension starting in November would be about £40 million in a full year. No reliable estimate can be made of the yield if the bene- fit were made taxable, because there is insufficient information about the income of beneficiaries.

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